#Emissions

Ford Motor Co, Honda Motor Co, BMW Group and Volkswagen AG announced a voluntary deal with California in July — drawing a line in the sand for who they’ll be supporting in the fueling fracas taking place between the Golden State and White House. Meanwhile, the Trump administration’s rollback proposal — which intends on freezing automotive emission standards at 2020 levels through 2026 — saw no such support. But the cavalry seems to have finally arrived after sitting on the sidelines during the battle’s opening maneuvers.

General Motors, Fiat Chrysler Automobiles, Toyota, Mazda, Nissan, Kia, and Subaru all sided against California in a filing with a U.S. appeals court from Monday night. While they’re not setting any economy targets, they are collectively firm on the issue of the state’s ability to self regulate. A large portion of the industry wants a single national standard, not individual states setting their own benchmarks while they attempt to catch up with product.

It’s certainly taking this fuel economy rollback proposal we’ve heard so much about a long time to evolve into its final form. Unfortunately, Environmental Protection Agency Administrator Andrew Wheeler has indicated more changes could be needed before a final draft can be released. However, in a bit of a twist, he’s now claiming the proposal will actually be more rigorous than preexisting mandates. Kind of.

“In some of the out years, we’re actually more restrictive on CO2 emissions than the Obama proposal was,” Wheeler told a crowd at the Detroit Economic Club this week.

While Volkswagen Group’s diesel lawsuits are more or less settled in the United States, 470,000 diesel owners in Germany are still fighting to see their payday. Unfortunately, the courts aren’t certain they’re deserving.

The court hasn’t settled on anything, but Monday’s introductory hearing concluded with presiding Judge Michael Neef wondering what customers actually lost by having their vehicles equipped with emissions-cheating software. The court claims its primary goal is to assess whether or not any loss in value can be attributed to vehicle bans that came years after VW’s diesel scandal broke. It’s concerned that drivers’ ability to continue using the automobiles doesn’t warrant awarding owners damages.

“It doesn’t make sense to us that drivers should be granted the right to use cars for free,” Neef said on behalf of the three judges hearing the case, according to Bloomberg. “Otherwise, we would have to grant punitive damages that do not exist under German law.”

California has gained additional support from two Democratic governors in the gas war. On Tuesday, New Mexico Governor Michelle Lujan Grisham announced her state would adopt new tailpipe greenhouse gas and zero-emission vehicle requirements starting in the 2022 model year. The following day, Minnesota Governor Tim Walz directed his state to do the same.

Both of the plans embrace Californian standards already adopted by 13 other states hoping to aggressively curb vehicle emissions and promote the sale of electric cars. It also expresses support for the state after the Trump administration announced it would take for steps to eliminate California’s ability to self-regulate fleetwide greenhouse gas emissions.

“It’s pretty obvious today amongst all chaos in the national news that we can’t count on Washington to lead, so Minnesota needs to,” said Walz.

A senior manager who led the team of diesel engineers behind Fiat Chrysler’s maligned EcoDiesel V6 has been indicted by a grand jury on charges of conspiracy to mislead U.S. regulators and the public.

Following an investigation by the Department of Justice, Emanuele Palma, FCA’s senior manager of diesel driveability and emissions, faces multiple charges of conspiracy to defraud the U.S., wire fraud, and violation of the Clean Air Act. He’s also accused of lying to the FBI and Environmental Protection Agency investigators.

All of this stems from the EPA-led outcry over auxiliary emissions control devices found on the company’s previous-generation 3.0-liter diesel truck engine.

With California gearing up for a legal battle against federal regulators eager to revoke its fuel waiver, we knew it wouldn’t be long before another salvo was launched in the gas war. However, the latest skirmish is a bit personal. According to Automotive News, Environmental Protection Agency Administrator Andrew Wheeler issued a letter to to California Air Resource Board chief Mary Nichols on Tuesday that framed the Golden State as unfit to dictate U.S. environmental policy.

The letter claims California has “the worst air quality in the United States” and a backlog of implementation plans to address ambient pollution standards surpassing every other state in the union.

California is scheduled to receive over $4 billion in annual federal highway funding this October. Now, the EPA is claiming the state failed to enforce the U.S. Clean Air Act. As a result, the Trump administration is threatening to withdraw those funds if the region doesn’t take immediately action on 130 different state implementation plans.

There’s a whiff of diesel in the air this morning, as all the news out of Europe seems to stem from compression-ignition trickery by German automakers. Hot on the heels of the indictment of Volkswagen boss Herbert Diess and his company’s chairman, Daimler finds itself on the hook for nearly $1 billion in fines in the same country.

The penalty comes by way of Germany prosecutors who claim some 684,000 Mercedes-Benz vehicles came equipped with rigged exhaust gas after-treatment systems.

While a considerable portion of Donald Trump’s Twitter announcements aren’t worth paying much attention to, he does occasionally slip some actual information in there. This week, the nugget was the confirmation that his administration intends to revoke California’s federal waiver on emissions — stripping the state of its ability to self-regulate and readying America for the gas war’s main event.

The Environmental Protection Agency was already known to be making preparations to do exactly this, but the president’s Wednesday posting made things crystal clear. “The Trump Administration is revoking California’s Federal Waiver on emissions in order to produce far less expensive cars for the consumer, while at the same time making the cars substantially SAFER,” he wrote.

California wants that ’84 Olds Eighty-Eight gone, stat. In its place, a citizen of limited means can apply for disposal funding and the (partial) means of replacing it with a cleaner car, or opt instead for a transit pass or car-sharing membership. Now, the state Senate has amended earlier legislation to include more “mobility.”

The Clean Cars 4 All Program, administered by the California Air Resources Board, will now fork it over to get you on some sort of bike.

Environmental Protection Agency Administrator Andrew Wheeler weighed in on the gas war this week, issuing some firm language on the matter during a visit to Chattanooga, Tennessee. His words were softer upon returning to Washington, where he reminded everyone that the EPA has made no formal decisions on the matter and suggested there could still be room for compromise.

Unfortunately, locating that happy middle ground has been a bit of a problem. Despite the fuel economy rollback’s status as a proposal, hard lines have been drawn in the sand between the Trump administration and California’s regulatory bodies. The Golden State’s compromise was to delay the Obama-era targets by one year. California also recruited municipalities, U.S. states, and automotive manufacturers to pledge their support of the plan, resulting in a handful of carmakers finding themselves on the business end of an antitrust probe.

Meanwhile, the Trump administration’s compromise has been nonexistent. Wheeler’s words suggest that might be because everyone is still making up their minds… but not before he gently razzed the West Coast for being shortsighted an singleminded.

Suspected emissions manipulation could net Daimler AG, parent company of Mercedes-Benz, a steep fine, but it seems the automaker already anticipates the expenditure. According to a report out of Germany, the auto giant stands to face a fine potentially topping $1 billion, which is a relative bargain compared to the bill handed to rival Volkswagen Group over its widespread emissions cheating.

It’s bad news Daimler doesn’t need in these turbulent times.

Two months and change after Ford Motor Company ceased production of North America’s smallest Blue Oval vehicle, Europeans are waking up to news that their tiniest offering has a date with death.

The Ka+, a name this writer can’t read without imagining a Bostonian pronouncing the word “car,” will disappear from the marketplace thanks to —what else? — fuel economy regulations that disproportionately impact small vehicles.

Automotive retail sales in China rose slightly last month, representing the first uptick in volume over the last year, according to Bloomberg. But those gains were the result of a nationwide fire sale of backed-up inventory that dealers were tired of seeing clutter up their lots. Officially, the China Association of Automobile Manufacturers (CAAM) says the new vehicle market still kind of sucks.

For June, wholesale deliveries of new passenger vehicles fell 7.8 percent to 1.73 million units. That’s twelve straight months of negative growth.

After Volkswagen admitted to equipping some of its diesel-powered autos with illegal software designed to circumvent emissions testing in 2015, every automaker on the planet fell under enhanced scrutiny. By 2016, U.S. regulators were checking on Mercedes-parent Daimler to see if there were any pollutant-related shenanigans taking place behind the scenes. Germany followed suit shortly thereafter, launching its own investigation.

However, with no local updates on the matter, it was presumed Daimler was in the clear — except Germany did find evidence of corporate misdeeds and the company recalled 3 million vehicles in 2017. At the time, we figured the situation would swiftly bleed over into the United States and help wrap things up. But it hasn’t yet and The Detroit News took time this month to ponder what’s taking federal regulators so long.

On Tuesday, 23 governors signed a joint statement urging the Trump administration to reconsider the proposed rollback of Obama-era fueling regulations. Led, unsurprisingly, by California Governor Gavin Newsom, the letter suggests a “common-sense approach” to national requirements with an emphasis on rising standards.

A minor update in the gas war to be certain — and yet annoyingly framed by a large portion of the media as a victory for California when the realities are far more complicated. To be frank, we’re getting pretty tired of these lopsided takes. This whole thing is a regulatory and political quagmire… on all sides.